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Future of Illinois hospital property tax exemption remains uncertain

On March 23, 2017, in Carle Foundation v. Cunningham Township, the Illinois Supreme Court declined to consider the constitutionality of the Illinois property tax exemption for hospitals. The Illinois Fourth District Appellate Court previously held that the hospital property tax exemption was unconstitutional, but the Illinois Supreme Court vacated this decision on the grounds that the Appellate Court lacked jurisdiction and remanded the case to the trial court for further proceedings. Also, the Illinois First District Appellate Court has issued a conflicting opinion that upheld the constitutionality of the exemption. Due to the opposing appellate decisions, it was hoped that the Illinois Supreme Court would consider the constitutional issue and resolve the controversy. The Supreme Court's decision to remand the case on jurisdictional grounds and not consider the constitutionality of the exemption extends the uncertainty in this area.